A net shaped ceramic-reinforced aluminum matrix composite is formed by forming a permeable mass of ceramic material with a defined surface boundary having a barrier, and contacting a molten aluminum-magnesium alloy with the permeable mass of ceramic material in the presence of a gas comprising from about 10 to 100% nitrogen, by volume, balance nonoxidizing gas, e.g. hydrogen or argon. Under these conditions, the molten alloy spontaneously infiltrates the ceramic mass under normal atmospheric pressures until it reaches the barrier. A solid body of the alloy can be placed adjacent to a permeable bedding of ceramic material having a barrier, and brought to the molten state, preferably to at least about 700.degree. C., in order to form the net shape aluminum matrix composite by infiltration. In addition to magnesium, auxiliary alloying elements may be employed with aluminum. The resulting composite products may contain a discontinuous aluminum nitride phase in the aluminum matrix.